Rolls-royce Share Discussion Threads

[mcmather] 10/2/2016 12:47

Agree careful re £9bn cap for rr. There is something on ii re it still being in a long term upward trend from 2003 but with reference to any price close below 475.859p changing this (for what any of that is worth).

[careful] 09/2/2016 14:02

bought a few today.
505p then could not resist a few at 498p.

hoping friday will be better than we are fearing.
what RR. would be worth to someone else is a factor here.
A cap of £9bn for a company of this stature is ridiculous.

[minerve] 09/2/2016 13:28

I think we have something we agree on careful; we both like this company and we want it to do well.

I shouldn't let emotion rule my investment choices, but I am just hoping RR give me a reason to buy back in on Friday. Being a supporter of UK engineering I would really like to have this stock back in my portfolio. I have BAB and BAE.

[careful] 09/2/2016 12:58

such pain, below 500p today.
almost £13 just over 2 years ago.

[standish11] 09/2/2016 10:21

Long the laggard among Beijing’s three big carriers, China Eastern Airlines plans to accelerate fleet expansion in the five years to 2020, despite the slowing of the national economy. The Airbus A350 will almost certainly be part of the airline’s future fleet, with an order to be announced possibly within weeks.

Above extract from Aviationweek. Maybe the order will be announced at the Singapore show next week which would give Rolls a boost after the gloomy results later this week.

[careful] 08/2/2016 07:26

almost relieved to hear that one A320 Neo customer has switched from the best selling Pratt engine because of its 'teething' troubles.

Very high pressure/geared fan..these are not easy projects.
We shudder to think the potential costs to Pratt if the many hundreds of these engines ordered prove to be unreliable in service.

[dafrog] 08/2/2016 07:14

Pity Monarch have gone for the B737 MAX8 with CFM engines. Would have thought they would support us.

[mcmather] 07/2/2016 20:02

Just catching up after a busy weekend; cheers for the updates notwithstanding their gloominess!

[standish11] 07/2/2016 11:36

Similar article in the Mail on Sunday so clearly there has been pre-results briefing to dampen down expectations.

[careful] 07/2/2016 11:12

a miserable press from the full page Sunday Times article and the Sunday Telegraph ahead of Fridays results.

Marine, power systems, nuclear, defence, cash flow negative, dividend slashed...even problems on civil installed engine service revenue.
No ray of sunshine to be had.

Let us hope they are being over pessimistic.

[mcmather] 05/2/2016 16:44

Think it is just too easy to play on the uncertainty which East has already commented upon a few months ago now. Just think that this has settled down now with the plans / proposals that have now been put in place.

[tlobs2] 05/2/2016 15:18

It sometimes makes me wonder if huge fees are paid by organisations to write some of the tripe that these so called experts peddle out.

In football and cricket it would be called match fixing ;-)

[mcmather] 04/2/2016 16:02

Blimey, not sell / underweight / etc...

4 Feb 2016 - Rolls-Royce Holding PLC (LON:RR) was upgraded by analysts at AlphaValue to an “add” rating in a report issued on Thursday, AnalystRatings.NET reports. The firm currently has a GBX 560 (crikey) price target on the stock. AlphaValue’s price objective would suggest a potential upside of 9.16% from the company’s current price.






And from the Share Centre in advance of the results next Friday:

The company has had a very tough time which has not been helped by the lower oil price affecting its marine division........Investors should also be aware that there is the possibility of a dividend cut in difficult times. We currently list Rolls-Royce as a BUY.


Or from Friday 5th February:

Rolls-Royce Holding PLC (LON:RR)‘s stock had its “sell” rating reaffirmed by analysts at Deutsche Bank in a research note issued on Friday, Market Beat Ratings reports. They presently have a GBX 430 ($6.19) price target on the stock. Deutsche Bank’s price objective would suggest a potential downside of 17.78% from the company’s current price.

[standish11] 04/2/2016 11:37

Rolls-Royce chief Warren East should ditch the embattled engineer’s dividend, abandon profit guidance and launch a £1bn fundraising in a bold move to head off constant questions about the company’s future.
The claim comes from Panmure Gordon analyst Sanjay Jha, who says such a “bold step” would draw a line under Rolls’ troubles, which have seen it issue five profit warnings in the past two years.

[careful] 04/2/2016 10:58

the results next week will reveal all.
no doubt restructuring charges and kitchen sinking by CEO.
a fresh start will be a good thing
the technology must be worth a lot.

[mcmather] 04/2/2016 10:29

Fully agree; this is where we are at, these are our options, right this is what we are going to do. Though it does seem a bizarre decision by the former boss to pull out of the narrow-bodied market.

Article in the FT from yesterday re possible sixth profit warning:


But they also ran a similar article back on 24 Nov 2015; ie nothing that was not already known?

[wad collector] 04/2/2016 09:19

Good to see a CEO being decisive.......provided it is the right decision.

[mcmather] 03/2/2016 20:12

careful, this might assist from 30 Dec 2015:

The chief executive of Rolls-Royce has said the prospect of making engines for narrow-bodied aircraft is very attractive but warned that the cost of re-entering the market would be significant.

The comments from Warren East, who took over as boss of the manufacturing group in July, have been interpreted by analysts as meaning that the company would only return to the booming market for planes that carry up to 200 people, through a major corporate deal.

There has been speculation in the City that Rolls-Royce could look to buy back into a joint venture with its rival Pratt & Whitney, which it left in 2012. In return, the US company would likely seek a major stake in Rolls-Royce’s wide-bodied business, which makes engines for the Airbus A380 superjumbo...

East made his comments about the market for small planes in a presentation to investors at the end of November. In the presentation East warned that there was a “significant cost of re-entry so [the] business case would need to be compelling”. However, he also said that Rolls-Royce was still making money from servicing engines on older narrow-bodied planes and could develop new engines for the generation of planes that will replace the A320 and the 737....

"The big question, I think – and there’s been a lot of debate that I’ve heard since joining the business – is ‘so what about narrow-body in the future’ and ‘surely you have to be in narrow-body in the future’? I think the answer is ‘no, we don’t’. We don’t have to be in narrow-body in the future. It’s a great opportunity at some stage when it arises. But right now, there isn’t an opportunity. There is no opportunity for us to enter this business until the early 2030s. There’s maybe a little bit of discussion about a sort of quasi wide-body opportunity maybe five years ahead of that.

“So this is actually not something that we should be wasting our time on right now in terms of debating."

[careful] 03/2/2016 14:01

Does anyone know if rolls are working on a smaller engine for the A320 neo/737 size aircraft?

Pratt are cleaning up with their 2 spool/ high pressure/ geared fan engine.
Post v2500 RR made a mistake leaving this market.
missing out on billions of orders.

[mcmather] 03/2/2016 13:51

Not sure if of significant relevance in the wider scheme of things (From Mon / Tues).

"WASHINGTON, Feb. 2 (UPI) -- Rolls-Royce's first MT30 gas turbines completed their first acceptance test to be used on the U.K. Royal Navy's Type 26 Global Combat Ship."

[careful] 03/2/2016 13:37

Full year results feb 12th.
things will be much clearer.
this has become a very complicated company with each division offering little in the way of synergy.
Also huge currency hedging operations..RR.are forced into forex trading on a large scale.
How will that turn out?

still, this is a great company, let us hope.

[wad collector] 02/2/2016 13:26

Time to add? 525 will trigger my buy order ; it seems likely that this will be back at a tenner in a few years. That will be a good investment for a bluechip in a bit of trouble but with an impressive orderbook and maintenance contracts ahead.

[standish11] 01/2/2016 14:52

Total Dreamliner orders to date are 1142 so that is not regarded as disappointing. Rolls' share of the engine orders is gradually improving.

[careful] 01/2/2016 13:47

the Dreamliner has been a disappointment so far.
let us hope it comes back into favour after this order.